Disallowance of cenvat credits to telecom industry.-Business Standard.

The first issue on chargeability to excise duty of the activity of erection of telecommunication towers etc. has now concluded vide the Mumbai High Court’s decision in CCE Vs. Hutchison Max Telecom Pvt. Ltd. (2007 –TIOL -809-HC-MUM), wherein it held that such activity brought into being immoveable property in the form of towers etc. and hence could not be subject to excise duty. This article discusses a recent important decision of the Mumbai Tribunal in the case of Bharti Airtel Ltd. Vs. CCE (2012-TIOL-209-CESTAT), which is on the other issue of availability of CENVAT credit on goods and services used in the erection of such passive infrastructure.


http://www.business-standard.disallowance-cenvat-credits-to-telecom-industry